A race against time and against ourselves. Against the dangerous idea that we can’t do this, that there is no way.
Unlike most races, it won’t have one winner. In this race we all win, or we all lose. Winning it requires a radical, unprecedented level of collaboration, from all corners of our world. From our cities, businesses, regions and investors. From people everywhere.
Together we’re racing for a better world. A zero carbon and resilient world. A healthier, safer, fairer world. A world of wellbeing, abundance and joy, where the air is fresher, our jobs are well-paid and dignified, and our future is clear.
To get there we need to run fast, and get faster. We need more and more people to join the race, and right now. This is not about 2050, it’s about today.
Together, we can do this. And we’re already on our way.
Bonn Climate Change Conference 2023; The Global Stocktake; Task Forces for the Sharm el-Sheikh Adaptation Agenda; Road to COP28; Africa CEO Forum
Bonn Climate Change Conference 2023 sets stage for inclusive and united action at COP 28
The Bonn Climate Change Conference (SB58) was a pivotal gathering of climate leaders, innovative minds, and influential stakeholders, which underscored the need for ambitious and immediate action on the climate and nature crises.
At the conference, the UN Climate Change High Level Champions for COP 27 and COP 28, Dr. Mahmoud Mohieldin and H.E. Ms. Al Mubarak spearheaded the mobilization of non-Party stakeholders towards addressing climate change. They led and participated in numerous events and discussions; highlighting not only the critical issues at hand but also the solutions that can change the trajectory of our warming planet.
Inaugurating the COP 28 Presidency’s and also the High-Level Champions’ engagement at the Conference, H.E. Ms. Al Mubarak underlined the importance of youth participation, applauding the leadership of COP 28’s Youth Climate Champion, H.E. Shamma Al Mazrui. Indigenous voices also resonated powerfully, reiterating the need for diversity and inclusivity in charting our path towards a net zero, nature-positive and resilient world. H.E. Ms. Al Mubarak hosted a listening session with representatives of Indigenous Peoples, with the aim of instilling hands-on experiences of protecting and conserving the environment and biodiversity into the COP 28 programme. H.E. Ms. Al Mubarak stated, “I’m ready to champion this group and ultimately mobilize the technological and financial solutions that are locally-led and beneficial.”
Interlinked discussions on finance, nature, adaptation insurance, loss and damage, ocean-climate actions, and the Sharm el-Sheikh Adaptation Agenda (SAA) led to robust deliberations, reinforcing the consensus that collective action and localized solutions are fundamental to global progress towards a 1.5 °C resilient world. These discussions left no doubt that this is a defining moment for our planet – a moment where we must mobilize every tool, resource, and innovation at our disposal to ensure a livable and thriving world for all.
The vital role of nature took centre stage in the “Finance and nature for transformative course correction” event. Dr. Mohieldin pressed the need to increase local finance flows, which are currently deemed “insufficient, inefficient, and unfair.” H.E. Ms. Al Mubarak highlighted the unfortunate reality that nature solutions currently receive only 8% of public climate finance and 17% of private finance.
During the “Actions After Impacts” discussion, it became clear that many local communities are already taking action in order to survive the worst impacts of climate change and bounce back from the related losses and damages. As Dr. Mohieldin noted, the COP27 Loss and Damage fund was recognized as a successful first step. However, as H.E. Ms. Al Mubarak emphasized, “It’s not just finance that will support these solutions. It is partnerships, it is scaling up and it’s ensuring that we play a part in also voicing the real needs of the communities and the boots on the ground.”
Dr. Mohieldin and H.E. Ms. Al Mubarak joined government representatives and the Insurance Development Forum at the “Insurance for Adaptation Round-table,” to discuss strategies to increase engagement of the financial sector in the Global Finance Policy Processes for adaptation and resilience. Recognizing the insurance industry as a significant player in addressing climate change, they underscored its potential to contribute significantly to the scaling up of climate adaptation and risk reduction efforts through the utilization of its climate risk analytics capabilities.
The Conference reignited conversations on mobilizing finance for adaptation and resilience, as well as empowering local communities. The Champions, in collaboration with the Adrienne Arsht-Rockefeller Foundation Resilience Center at the Atlantic Council and the Insurance Development Forum held a meeting exploring the critical need for the insurance industry to invest in adaptation to reduce risks and vulnerabilities, plus to inform finance policies to enhance private sector mobilization for adaptation, resilience, and loss and damage.
H.E. Ms. Al Mubarak opened the Ocean-Climate Dialogue and welcomed the work of the Marrakech Partnership Ocean and Coastal Zone Group which is developing Ocean Sectoral Breakthroughs. These science-based and measurable targets will provide compasses to accelerate governments and non-State actors actions and investments for key ocean-based climate solutions. These solutions range from coastal ecosystems, which can absorb a large amount of carbon and increase the resilience of coastal communities, to aquatic production, which can provide low carbon proteins for our growing global population, and a more sustainable maritime transport industry.
The Global Stocktake: charting a course to climate & nature recovery
The Global Stocktake (GST) – a comprehensive process for countries and stakeholders to see where they’re collectively making progress towards the Paris Agreement goals, which will culminate at COP 28 – was a key focus of the Bonn conference.
Building on previous discussions on the “what” and “how”, the technical assessment phase came to a close with the third and final technical dialogue (TD1.3) in Bonn with a focus on “what is next?”. Through four insightful round-table discussions, a dynamic World Café session, poster session and other events convened by the co-facilitators, Parties and non-Party stakeholders exchanged views on the enhanced actions and support needed across areas of mitigation, including response measures; adaptation, including loss and damage; means of implementation and support, including finance, technology and capacity building; and integrated and holistic approaches. The science is clear that urgent action is required to halve emissions, build adaptive capacity and resilience, end biodiversity loss, and address climate losses and damages by 2030. The findings from the technical phase will provide the foundation for the political phase and will help Parties and non-Party stakeholders identify what is needed to course-correct and achieve the Paris Agreement goals at COP 28. As such, the GST is one of the most important priorities for the multilateral climate change process this year and the response and follow through on the outcomes from COP 28 will determine how successful the world will be in stabilizing the climate.
The significant role of non-Party stakeholders in the GST was re-emphasized as Parties expressed their appreciation for the contribution and engagement of non-Party stakeholders in TD1.3, and encouraged them to organize events at the local, national, regional and international level in support of the first GST. The high-level committee, consisting of the Chairs of the Subsidiary Bodies and COP 27 and COP 28 Presidencies and who chair the high-level GST events to be convened at COP 28, also stressed the importance of non-Party stakeholder participation in the political phase and how the UN Secretary-General’s Climate Ambition Summit and the Regional Climate Weeks are key milestones. In the lead up to COP 28, Parties and non-Party stakeholders will be invited to submit their views on the elements for the “consideration of outputs” component by 15 September 2023. Watch this space for more details on this opportunity.
Task Forces inject new momentum into the Sharm el-Sheikh Adaptation Agenda
A landmark event launching the Sharm el-Sheik Adaptation Agenda Task Forces was attended by both High-Level Champions at Bonn, injecting strong momentum into the global adaptation and resilience movement, under the Sharm El Sheikh Adaptation Agenda (SAA). The Task Forces will bring together countries and non-Party stakeholders to focus on critical areas such as Food Systems, Water, Human Settlements, Oceans, Infrastructure, and Finance. The first working sessions of the Task Forces took place, prioritizing key areas of mobilization, planning finance, and tracking progress – and overall the sessions focused on shaping common, engaging narratives for consolidated action on adaptation system transformation.
Dr. Mohieldin, highlighted that adaptation finance is improving, but at an alarmingly low rate: currently only 4% is mobilised by the private sector. He said: “Even if global mitigation efforts are doing well, which are not yet, there is a lot to do on adaptation. We must take this action from global measures to local plans through finance, collaboration and technological advances”.
During the Task Forces launch, resilience experts and members of the Race to Resilience’s Methodological Advisory Group, including Anand Patwardhan, Emilie Beauchamp, Ana Maria Lobo-Guerrero, and Paulina Aldunce, highlighted the importance of the SAA in driving collaboration and fast-tracking action for populations in climate vulnerable situations. They underscored the need to address the adaptation gap and prioritize support for vulnerable communities to build resilience against now-unpreventable climate change impacts.
As well as the representatives from the COP27 and COP28 Presidencies, other attendees included the Marrakech Partnership Focal Points, numerous UN agencies, the International Union for Conservation of Nature (IUCN), and the Race to Resilience 36 partners’ initiatives. Their collective work will be instrumental in delivering the first SAA Implementation Report at COP 28.
Ongoing Champions activity outside of the Bonn Climate Conference:
“Road to COP 28” event sparks renewed momentum in UAE
On 29 May, H.E. Ms. Al Mubarak, the COP 28 Presidency, and Dubai Chambers hosted the major event, the ‘Road to COP28: Driving Collective Action in the UAE‘ in the Dubai International Financial Centre. The event convened a massive audience of over 600 local stakeholders and non-Party stakeholders to accelerate climate action in the lead-up to the UAE-hosted COP 28. At the event the Race to Zero and Race to Resilience campaigns were highlighted, emphasizing opportunities for the UAE within the all-of-society mandate for comprehensive climate action.
Key takeaways from the event included:
Adaptation & Resilience: The importance of adaptation, particularly nature-based solutions, and the potential costs of inaction was a key focus. The Insurance Adaptation Acceleration Initiative demonstrated the potential for local and regional insurance companies to steer funding towards nature-based solution.
Mitigation: Robust net zero targets were emphasized as a crucial framework for companies to reduce climate impacts, supported by the 2030 Breakthroughs which define clear mitigation pathways for around 30 critical sectors. Local initiatives the UAE Alliance for Climate Action and the UAE Ministry of Climate Change and Environment’s “Climate-Responsible Companies Pledge” were highlighted for companies starting their climate action journey.
Finance: It’s estimated that $3-6 trillion a year through to 2050 is needed to fund the systems transformation required by the Paris Agreement’s objectives. For the UAE’s financial institutions to play their part, they were encouraged to set interim targets, join Race to Zero Finance Partner alliances, and engage with initiatives like the Glasgow Financial Alliance for Net Zero (GFANZ).
Dr. Mahmoud Mohieldin joins pivotal meetings on Climate Finance, Green Hydrogen and Carbon Markets at the Africa CEO Forum
Dr. Mohieldin joined a series of roundtables at the Africa CEO Forum in the Ivorian capital of Abidjan speaking on strategies to scale climate mitigation and adaptation solutions through rallying public and private finance for bankable African projects rooted in regional priorities, the Paris targets, and the Sustainable Development Goals (SDGs).
In a round-table on “Positioning Africa as a Green Hydrogen Powerhouse”, Dr. Mohieldin highlighted strategies for Africa to maximize its potential as a producer and exporter of green hydrogen – by increasing demand and reducing production, transport and storage costs. Dr. Mohieldin stressed the need to catalyse the supply for African green hydrogen, through adoption of technology and skills for production and storage. He also called for collaboration with neighbouring countries and regions, especially Europe, which have a strong demand for clean fuels to decarbonise their economies.
Financing to support the growth of a green hydrogen industry in Africa should be led by investment, or through concessional financing from international financial institutions (IFIs) and multilateral development banks (MDBs). Dr. Mohieldin reasserted the “1% for 1.5 C” model, for MDBs to extend concessional finance terms to low – middle-income countries.
Dr. Mohieldin also contributed to a high-level round-table on “Carbon Credits: Optimizing the Value Chain to Boost Revenue,” which was attended by project developers, government representatives, certification bodies and buyers, to discuss growing Africa’s revenue on voluntary carbon credit markets. Dr. Mohieldin highlighted that since the Africa Carbon Markets Initiative (ACMI) was launched at COP 27 in Sharm el-Sheikh, its potential as a model for regional cooperation has expanded significantly – driven by official support from both the Egyptian and Emirati presidencies of COP 27 and COP 28. He stressed the need to set-out clear governance standards to maximize the potential of African carbon markets, specifically a regulatory and legislative framework that defines the roles of governments, the private sector and civil society.
On the fringes of the CEO Forum, a strategic discussion took place entitled, “Toward the African Regional Forum & COP 28: Unlocking climate finance flows to African projects through “finnovation”. It highlighted potential investment opportunities across the continent which have been evolving since the Africa Regional Forum in Addis Ababa last year. For example, the event featured several projects seeking investment opportunities, from e-mobility ventures in Nigeria and Rwanda to organic fertilizer ventures in Kenya, with funding requirements ranging from $3 million to $192 million.
Overall, the Champions will continue to stress that the global community cannot burden developing countries with additional debt in the pursuit of a just energy transition, in their ongoing engagements towards the 2nd Annual African Regional Forum in September in Kenya, and beyond to COP 28. For example, the mobilization of climate finance through concessional finance and private equity will be a primary focus of the Champions’ attendance at the upcoming Summit for a New Global Financing Pact in Paris later in June.
The shipping industry is on the cusp of a new era
As renewable rich, but low-income regions, such as Africa, shape the opportunity to forge green hydrogen hubs, some of the world’s largest cargo owners have now committed to eliminate their emissions, signalling clear demand for zero-emission green hydrogen. Major vessel owners, operators, and manufacturers are also responding to this demand by building and testing a new generation of vessels powered by fuels made from green hydrogen that could make deep sea zero-emission shipping a reality by 2030, with the first due for delivery this year.
The High-Level Champions are supporting collaboration between Africa’s burgeoning green hydrogen hubs, and its potential customers in the shipping sector, through the Africa Green Hydrogen Alliance. The Champions’ 2030 Breakthrough for Shipping aims for zero emission fuels to constitute 5% of international shipping’s energy demand by 2030.
Clear goal-setting and engagement are driving collaboration between countries and the shipping community in the early stages of the shift to clean fuels. Belgium-based maritime group, CMB is one of a range of leading shipping companies to have announced a commitment to achieve zero emissions by 2050, including Race to Zero member Maersk, plus COSCO and CMA CGM. Three years after setting its net zero target, CMB is collaborating with Namibia’s Ohlthaver & List (O&L) Group, to construct the country’s first green hydrogen plant, which should be operational by the end of 2023. The aim is to produce green hydrogen from Namibia’s rich solar power resources, and distribute clean fuels domestically to the country’s industrial transport, such as trucks, trains, mining equipment and ships. Depending on the results of the demonstration plant, a larger scale production plant will follow in a second phase.
By convening the supply and demand-side of green hydrogen or hydrogen-derived fuels, this presents a viable solution for the transition of the shipping industry to zero emissions, as well as a route to unlocking prosperity in low income countries.
To bring this vision to life, the outcome of next month’s government negotiations at the International Maritime Organization (IMO) are crucial. The IMO will consider a revised GHG strategy to align shipping with a 1.5 °C trajectory (MEPC 80, 3 – 7 July). If adopted, this strategy will set the benchmarks for any future international rules around shipping GHG emissions. This is a decisive opportunity to build a new maritime system capable not only of driving global trade, but also of shaping the future of our planet.
World Oceans Day update: Ocean Action is Climate Action
On World Oceans Day, Ignace Beguin Billecocq, Ocean and Coastal Zones Lead at the Climate Champions Team spoke at the inaugural MENA Oceans Summit in Dubai and DP World Ocean Day Celebration on the opportunity to harness oceans in our efforts to tackle the climate crisis.
Mr. Beguin Billecocq highlighted that while cutting carbon emissions was the priority, governments and businesses should use COP 28 to increase their efforts to protect and sustainably manage the world’s ocean. Mr. Beguin Billecocq commented, “By increasing greenhouse gas emissions, we are limiting the capacity of the ocean to deliver on its role… the number one priority is to reduce greenhouse gas emissions. But the ocean is a true part of the solution for people and the planet. Ocean action is climate action and climate action is ocean action”.
There is a substantial funding gap for sustainable ocean action. At least $175 billion USD per year is needed to achieve all Sustainable Development Goal (SDG) 14 targets for healthy oceans. Yet, funding in support of our ocean receives the least amount of long-term funding of any of the SDGs, reportedly less than $10 billion was actually invested in SDG 14 between 2015 and 2019. To address this enormous shortfall, investor interest is rising in a relatively new financial instrument – blue bonds, which have major potential as the next wave of sustainable finance.
On World Oceans Day, Ørsted became the first energy company in the world to issue blue bonds. The company issued a five-year, EUR 100 million blue bond, to raise capital for sustainable blue economy projects, which in the case of Ørsted means, promoting biodiversity in areas surrounding its offshore wind infrastructure, plus sustainable shipping fuels. The blue bonds are a win-win in terms of supporting Ørsted’s target to deliver a net-positive biodiversity impact from its renewables fleet by 2030, as well as providing long term risk and return prospects for investors.
Race to Zero latest developments:
Shroders activates net zero, nature positive journey via the “5P” framework
Schroders, the prominent asset management firm, is leading the way in integrating its operations and investments within a net zero, nature-positive economy. As a Race to Zero member and partner of SBTi and Net Zero Asset Managers, Schroders has been actively pursuing responsible practices in recent years – and it has employed the “5P” framework (Pledge, Plan, Proceed, Publish, Persuade) conceived by Race to Zero, to centralize nature within its strategic approach.
Pledge
In 2022, Schroders released its Group Nature and Biodiversity Position Statement, outlining its commitment to address nature and biodiversity impacts. The firm is also a signatory to the Finance for Biodiversity Pledge, a collective effort to promote best practices and achieve nature-preserving targets. One key pledge is Schroders’ commitment to cut exposure to commodity-driven deforestation in its managed investment portfolios by 2025, aligned with the broader Financial Sector Commitment on Eliminating Commodity-Driven Deforestation.
Plan
Schroders’ ‘Plan for Nature’, introduced in 2022, outlines a detailed roadmap for embedding nature considerations into investment decisions. It focuses on insights, influence, and innovation. Through proprietary models and frameworks, Schroders assesses biodiversity risks and impacts to gain valuable insights to underpin investment solutions that protect and restore nature.
Proceed
Schroders actively participates in initiatives to invest at scale in nature. Through projects like Akaria Natural Capital, in collaboration with Conservation International, the firm invests in nature-based climate solutions in Southeast Asia. Schroders also supports conservation and reforestation projects in emerging markets through its subsidiary, BlueOrchard.
Publish
Transparency is a key aspect of Schroders’ approach. The firm shares insights on its nature-related initiatives through publications such as the Plan for Nature and the Group Nature and Biodiversity Position Statement. These publications are designed to enhance accountability and provide stakeholders with a deeper understanding of how nature is integrated into investment decisions.
Persuade
Schroders recognizes the importance of communication to promote understanding of finance for nature. Through articles, reports, podcasts, and videos, the firm educates stakeholders about the significance of nature in investment decisions. By participating in global events like COP 15, Schroders contributes to the dialogue on biodiversity conservation, encouraging the financial industry to embrace a more nature-positive future.
International Day for Biological Diversity: Moving from Agreement to Action
2023 marked the 20th anniversary of the UN-sanctioned International Day for Biological Diversity. To mark this milestone, H.E. Ms. Al Mubarak recorded a video message reminding nature restoration stakeholders of the hope and determination provided through the adoption of the Kunming-Montreal Global Biodiversity Framework at COP15.
Africa Climate Week and Latin America and Caribbean Climate Week – host an event!
The Africa Climate Week 2023 (ACW 2023) and the Latin America and Caribbean Climate Week (LACCW 2023) are scheduled for 4 to 8 September in Nairobi, hosted by the Government of Kenya, and in Panama City, hosted by the Government of Panama, respectively. These are opportunities to exchange climate solutions, approaches for overcoming barriers, and potential opportunities for transformation in the region to build momentum ahead of COP 28 and the conclusion of the first global stocktake. Applications from a diverse set of stakeholders working in the regions are welcome and they are asked to align these with one of four tracks:
● Energy systems and industry.
● Cities, urban and rural settlements, infrastructure, and transport.
● Land, ocean, food, and water.
● Societies, health, livelihoods, and economies.
The organizing partners are now accepting applications for hosting Side Events and sharing climate action in the Action Hub. The application deadline is 30 June 2023, 23:00 East Africa Time (EAT) for ACW 2023 whereas the deadline for LACCW 2023 is 21 July 2023, 23:00 Panama (UTC-5) (Spanish version).
In Case You Missed It
As part of an effort to report progress on the implementation of climate resilient infrastructure and to showcase curated best-practice case studies and initiatives with the potential to deliver change at scale and at pace, the International Coalition for Sustainable Infrastructure (ICSI) has published the Climate Resilient Infrastructure Report with exemplary participatory processes to new and innovative ways to harness technology for sustainable development. These case studies demonstrate ways to deliver solutions for infrastructure that uplifts nature instead of dominating it, puts human well-being at their core, and builds climate resilience and adaptation. Forming part of ICSI’s contribution to the Race to Resilience, the report also highlights where featured case studies meet Race to Resilience targets and outcomes of the Sharm El-Sheikh Adaptation Agenda.
“Achieving the just transition: A toolkit for city leaders across the globe” is a new resource developed by C40 to provide mayors and city leaders with an overview of the actions needed to ensure a just transition. Encompassing seven pillars of recommended action, the toolkit presents key concepts, advice on implementation and a self-assessment checklist to guide stakeholders along the way towards creating green jobs and becoming more equitable, resilient and sustainable.
It has been highlighted through the “Cultivating Farmer Prosperity: Investing in Regenerative Agriculture” report that farmers could expect a 15-25% return on investment by transitioning from conventional to regenerative agriculture systems. The transition to regenerative agriculture methods can take three to five years and may be associated with profitability loss due to decreased crop yields and capital outlays for specialized equipment. Nevertheless, this can be mitigated through a range of support options for farmers, including cost share programs, sustainable leases, improved insurance terms, regenerative crop warranties, government subsidies, price premiums, lending programs, and ecosystem services markets.
In preparation for the 4th International Conference on Small Island Developing States (SIDS4), UN DESA is organizing a global online stakeholder consultation to solicit inputs from stakeholders on key challenges that SIDS face in achieving their sustainable development priorities, policy recommendations, and examples of game-changing actions that can accelerate progress towards sustainable development in SIDS. Deadline for submission is 7 July.
Keeping up with the Champions
H.E. Ms. Al Mubarak addressed the ‘’Delivering on Nature and Climate Outcomes and Ambition at COP28′ side event, held at the Bonn Climate Conference (SB58).
H.E. Ms. Al Mubarak made the case for an integrated response to the climate, biodiversity, and desertification crises at COP 28, to maximize overall impact across all three agendas.
At the Second Glasgow Dialogue on Loss & Damage at the Bonn Climate Conference (SB58), Dr. Mohieldin underscored that the historic Loss & Damage Fund that was launched in COP27 is an opportunity to achieve balance and justice in bearing the burdens of climate change.
Dr. Mohieldin addresses London’s Net Zero Delivery Summit.
At the end of May, Mohieldin joined speakers including the Governor of the Bank of England Andrew Bailey, and Prime Minister of Barbados Mia Mottley, to address the pressing challenges preventing fast and decisive action to curtail emissions at net zero.
Dr. Mohieldin speaks at Innovation Zero, London
During an event hosted by Innovation Zero late May in London, Dr. Mohieldin shared an update on the latest developments in the Race To Zero Campaign while shedding light on actions and commitments made by partners via a recorded video message.
H.E. Ms. Al Mubarak presides over the International Union for Conservation of Nature (IUCN) Council Meeting
IUCN President H.E. Ms. Al Mubarak convened the 109th Council Meeting of the IUCN in Gland, Switzerland. A key issue on the agenda was incorporating nature and biodiversity conservation into the COP 28 process.
Dr. Mahmoud speaks at the International Conference on Climate and Environment Nile University, Egypt.
On June 5, Dr. Mahmoud virtually chaired and spoke at the International Conference on Climate and Environment, at the Nile University on the occasion of World Environment Day.
H.E. Razan Al Mubarak elevates Built Environment Breakthrough at the EgyptGBC Net Zero International Conference.
H.E. Ms. Al Mubarak gave a keynote address at the EgyptGBC event on the major opportunity to combat the climate and nature crises through investment in a sustainable Built Environment sector. The speech highlighted the 1,000 cities that have already pledged to cut their emissions in half by 2030 through the Race to Zero and the Breakthrough for Built Environment.
Dr. Mohieldin features on CNBC Arabia with IRENA and OPEC heads.
Mohieldin discussed recent climate developments on CNBC Arabia, alongside Francesco La Camera, the Director General of the International Renewable Energy Agency (IRENA) and Secretary General Haitham Al Ghais of OPEC. (The interview is here, Mohieldin’s section is from 10m, 50 seconds).
